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Memo - City Council 2015 Budget and Tax Levy Discussions 5 GENERAL FUND 2006 2007 2008 2009 2010 2011 2012 2013 Net Change in Fund Balance 71,658$ 584,493$ (320,166)$ (28,505)$ (59,068)$ 387,849$ 199,584$ 14,787$ Unassigned Fund balance (per policy should be 50%)53%68%58%54%50.40%54%56%54% Actual Dollars per above 83,850$ 582,719$ 245,314$ 122,826$ 25,870$ 113,617$ 247,028$ 162,417$ ***** *Changed policy to next year's expenditures from current year's actual results **City Hall Payment transferred in 2008 OPERATING BUDGET Salary and Benefits The 2015 preliminary budget is currently being prepared assuming a 2% wage adjustment for non-union staff and a 1.5% wage adjustment for union staff. In surveying surrounding communities most have included a 1.5% - 3.0% COLA increase in their preliminary estimates. The current proposed budget impacts for the General Fund are as follows: a. COLA $18,516 b. Step Increases $2,651 c. Benefits (includes dental, PERA, and payroll taxes. No increase in medical) $4,611 The results from the City Council authorized market and pay equity study should be available before the Council approves the final budget. Our consultant has given us a date of November 17th for preliminary data. Benefit History The City currently provides $699.61 per month per full-time employee for benefits (pro-rated for permanent part-time employees). In September of 2001, the City Council authorized all employees receive Benefit Parity effective October 1, 2001. This meant that every employee would receive the same benefit whether single or family coverage was taken and was the employee’s choice. Attached is the recommendation given at a worksession and the September 24, 2001 minutes when it was adopted. (Attachment A and B) Below is a chart which illustrates the costs of coverage to employees per month for medical and dental since 2004 and the City’s contribution amount. You will note that we offered a Co-Pay plan (BCBS Aware Gold) and to reduce our costs, we then tried a $300 deductible plan in 2007, and the High Deductible Plan with a HSA in 2008. Employees have had their choice of two plans since 2007 as Lakes Country Cooperative allowed this. Starting in 2009, the Council only allowed Benefit Parity if employees took the High Deductible Plan option to encouraged employees to move from the Co-Pay Plan to the High Deductible Plan. By 2013 all employees had switched to the High Deductible Plan and we discontinued the Co-Pay Plan and replaced it with another High Deductible Plan that had an embedded deductible amount for families which had a much higher deductible for both single and family. Dental insurance is through Health Partners and in 2008 we change from Single/Family to Single/Single plus One/Family which